Kolkata is the major financial and commercial hub for all of Eastern India and most companies in the city have had their offices headquartered in the CBD (Central Business District) which is near the city center. However, there are issues relating to project based infrastructure, parking, lower grade-A office space supply and overall congestion that have led to several companies looking for office space in the peripheral and secondary business districts in the Greater KMA (Kolkata Metropolitan Area). These zones are steadily turning into major hubs for the IT and ITeS industries. SBDs have come up along the Park Circus Connector-Topsia stretch and also along the Rashbehari Connector-Kasba Industrial Estate stretch. Two peripheral business districts have also come up in the form of New Town and Sector V in Bidhannagar.
These SBDs offer good connectivity options, commuting options and attractive rentals for office spaces. The peripheral business districts are situated in satellite towns and these help in decongesting the city. The Government has also given multiple incentives for residential and commercial development in these satellite townships. Companies are warming up to the fact that SBDs and PBDs have rentals which are lower than the average rates in CBDs to the tune of 15-25% and 55-65% respectively.
The stretch between Park Circus Connector and Topsia is located excellently with great access to several parts of Kolkata along with key roads which also connect to peripheral areas in the Kolkata Metropolitan Area. The rentals are stable here although land supply for development is limited. As a result, commercial real estate growth is most likely to be re-development ventures going forward according to experts. Major real estate projects near this stretch include Forum Atmosphere which is one of the big-ticket realty projects lined up along the connector to the EM Bypass among others.
The Kasba Industrial Estate-Rashbehari Connector SBD has also seen numerous office additions over the last few years. The development of office spaces in these zones has also led to residential realty growth in nearby locations.
The PBDs have been created to decongest the main city and there are multiple development incentives available from the State Government. These areas have seen high demand since they are located in close proximity to the Kolkata International Airport and for improvements in connectivity. The Government’s initiatives to improve connectivity via the metro railway extension and better roads should also influence commercial real estate in the future and particularly in these SBDs and PBDs. Favorable regulations like the urban land ceiling relaxation in case of particular developments and added FAR provisions for reconstructing old buildings and also developments near the metro routes in New Town should also spark large-scale real estate development. The West Bengal Housing Industry Regulation Act or WBHIRA has also been notified and should give a major boost to Kolkata’s real estate sector.
